Japan Major Rolled Copper Makers to Improve Profitability in F2008

Japanese 5 rolled copper makers out of major 6 firms posted lower consolidated operating profit for the year ending March 2008 from previous year. They were suffered from lower demand for brass bar and copper tube and lower inventory valuation gain. The 4 makers expect the profit increase for the year ending March 2009 from previous year through more sales for high valued products, better productivity and higher rolling margin despite of uncertain demand and higher depreciation. Brass bar and wire making Nippon Shindo expects 51 billion yen of operating profit for the year ending March 2009, which is 2.9 times higher than the profit in the year ending March 2008, when the profit dropped by 71% from previous year. The firm tries to improve the profitability through better rolling margin and higher output for processed materials along with better productivity. Copper flat and strip making DOWA Holdings’ metal processing unit expects the operating profit increases to 1.9 times for the year ending March 2009 from previous year. The unit expanded the output capacity while the unit acquired rolled copper operation from Yamaha Corporation. San-Etsu Metals tries to improve the operating profit by 12% for the year ending March 2009 from previous year through better productivity. The firm seeks scale merit when Tonami plant focuses on production of round bar and environmental products while Shinnitto plant focuses on the output of hexagonal bar and small bar. KITZ Corporation’s copper rolling unit tries to expand the sales of high valued products including lead less and cadmium less products for better profitability. The firm also tries to improve the raw materials procurement to minimize the loss from change of raw materials cost.